Fairer Funding For Farming Communities

NSW Farmers has renewed calls for fairer local government funding for regional and rural communities as it fronted a state parliamentary inquiry today.

NSW Farmers Business, Economics and Trade Committee Chair John Lowe said local councils were on the brink due to increased financial pressure, calling for a critical review of funding structures to ensure rural and regional communities had the support they need.

"Local councils have more responsibilities than ever before, and the cost of maintaining and building services and infrastructure has also spiked - leaving many local councils right on the brink with resourcing," Mr Lowe said.

"With these councils struggling to generate revenue, farmers and local residents are being left to shoulder huge rates while they cope with sub-standard services and infrastructure that won't be fixed anytime in the near future.

"From roads needing urgent repair to key community facilities, there is a lot left lacking in the bush, and better funding for our local councils will be the key to building better communities."

Special variation rates, cost-shifting, infrastructure funding and accountability were just some of the challenges Mr Lowe said must be addressed to improve local government funding, with six recommendations put forward by NSW Farmers as part of the hearing.

"Removing local council rate exemptions on Crown Lands and pausing special variation rate applications are just two solutions we're putting on the table to support fairer funding," Mr Lowe said.

"Boosting federal support for Financial Assistance Grants, prioritising more indexed block grants for roads and providing better training for local governments to handle finances and administration would also go a long way to supporting local councils and the services they provide.

"At the end of the day, it's all about proper resourcing, so we can do the work that needs to be done to keep our local communities strong and sustainable well into the future."

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